Max Maxwell has been the audit engagement partner for the external (financial statement) audit of Acme Global Freight Limited (Acme), a listed company, for approximately 10 years and Acme has been an audit client of Max’s accounting firm, Maxwell & Partners, for nearly 30 years. Max’s daughter has just accepted a job with Acme as a group accountant. This role would entitle Max’s daughter to share options in Acme as part of her remuneration package. Acme has just awarded an assignment to advise on the tax treatment of complex financial transactions to a tax partner of Maxwell & Partners. The managing director of Acme has invited Max as a guest to Acme’s corporate box for an upcoming super rugby game and he has also asked if Max would mind accompanying him on some visits to investments banks to discuss Acme raising new share capital.  An accounting partner at Maxwell & Partners has seconded a staff member to Acme for a 3-month period to cover for one of Acme’s accountants who is taking parental leave. Acme has recently launched a new insurance division offering life and general insurance products. Acme’s managing director is concerned that the investment made in the insurance division will impact cashflow and has asked Max if he would consider receiving share capital in Acme in lieu of an audit fee for the upcoming audit. Max is not comfortable with the way that Acme is calculating its income tax liability and is considering discussing his concerns with the Inland Revenue Department. Required   Identify and explain SIX ethical threats which may affect Max and the audit of Acme. For each threat explain the course of action that Max should take to respond the threat.   Answer in the following table format:     Threat Explanation Response 1     2     3     4     5     6